Hannan noted that the approval of two items related to
the Reutter Park Place development, including one tax incentive, had been
pulled from the Council's agenda Monday "due to concerns over the developer's
compliance" with the executive order.

"In light of these concerns we support sending this
project back to committee for further review," Hannan said, adding that the city
would investigate how the project came forward without proper certifications.

The administration still supports the redevelopment of
the old YMCA site, he said, and hoped to continue the project once the tax
issues were resolved.

Lansing City Council President Brian Jeffries was less
generous.

"[Essa] is asking us to put the full faith and credit of
the city behind this project and he won't pay his taxes," Jeffries said. "I'm
not sure if this is the kind of person or developer we want to do business
with."

Exactly what recourse the council has remains unclear.

City Attorney Brig Smith said he wasn't sure, without
further research, whether there were any consequences for the developer or the
city for the failure to abide by the executive order.

The idea was more of an attempt to establish a set of
ground rules for doing business with the city, Smith said.

Whether following the executive order is mandatory for
any developer seeking a tax incentive, or whether failing to do so would
invalidate any subsequent incentives, remains unclear.

Asked if there was a mechanism in place to rescind the
council's approval of a Brownfield redevelopment incentive in June 2011 – when Essa
was delinquent on the property he was receiving the incentive to develop –
Smith said he would have to look into it.

Some of those questions are likely to be addressed at the
Committee on Development and Planning's next meeting, set for Thursday, Oct. 18
at noon.